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on Small Business Management |
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Issue of 2019‒10‒07
seventeen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Klimczuk-Kochańska, Magdalena |
| Abstract: | Background. For universities, it is essential to develop in the direction of market expectations. It is necessary to enter into cooperation with entrepreneurs which allows technology transfer to create innovations. The knowledge triangle model is a concept that involves creating relationships between universities, research institutions and enterprises. This idea is very important for European policy and is implemented by the European Institute of Innovation and Technology (EIT). However, it is worth checking whether it is actually being implemented. Research Aims. To check if the approach of the knowledge triangle is used in practice by entities set up under the EIT. Another research aim is an exploration of the current directions in which the university's cooperation with other bodies is heading, and if this has an impact on raising the level of innovation in Europe. Methodology. A look at the model of cooperation between universities and the environment and search for an appropriate framework of benefit from this kind of collaboration on scientific literature review. Moreover, the desk research regarding the EIT Food - one of the European initiatives in the food sector. Key findings. The analyses carried out allow us to state that the concept of the knowledge triangle is not just a theoretical idea. The concept has its application in practice. It was also identified that universities are the main engine of all undertaken activities in the field of education, research and innovation. |
| Keywords: | cooperation, entrepreneurial university, knowledge triangle, third mission, triple helix, quadruple helix |
| JEL: | L22 O31 O32 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96150&r=all |
| By: | Ufuk Akcigit; Sina T. Ates |
| Abstract: | In the past several decades, the U.S. economy has witnessed a number of striking trends that indicate a rising market concentration and a slowdown in business dynamism. In this paper, we make an attempt to understand potential common forces behind these empirical regularities through the lens of a micro-founded general equilibrium model of endogenous firm dynamics. Importantly, the theoretical model captures the strategic behavior between competing firms, its effect on their innovation decisions, and the resulting “best versus the rest” dynamics. We focus on multiple potential mechanisms that can potentially drive the observed changes and use the calibrated model to assess the relative importance of these channels with particular attention to the implied transitional dynamics. Our results highlight the dominant role of a decline in the intensity of knowledge diffusion from the frontier firms to the laggard ones in explaining the observed shifts. We conclude by presenting new evidence that corroborates a declining knowledge diffusion in the economy. We document a higher concentration of patenting in the hands of firms with the largest stock and a changing nature of patents, especially in the post-2000 period, which suggests a heavy use of intellectual property protection by market leaders to limit the diffusion of knowledge. These findings present a potential avenue for future research on the drivers of declining knowledge diffusion. |
| Keywords: | business dynamism, market concentration, competition, knowledge diffusion, step-by-step innovations, transitional dynamics |
| JEL: | E22 E25 L12 O31 O33 O34 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7854&r=all |
| By: | Pietro Moncada-Paterno-Castello (European Commission - JRC); Sara Amoroso (European Commission - JRC); Dimitris Pontikakis (European Commission - JRC); Emanuele Pugliese (European Commission - JRC); Alexander Tuebke (European Commission - JRC) |
| Abstract: | Key science and EU policy topics on 'Innovation for industrial transformation', the focus of CONCORDi 2019 Conference, are addressed in this background report such as: how manage an inclusive and sustainable industrial transformation, establishing European firms as globally competitive; how to advise industrial and innovation policy on how to take into account specific territorial needs to guarantee fair and sustainable competitiveness and job creation across the whole EU; and what are the main challenges and opportunities that EU industry transformation due to innovation will face. Addressing these compelling topics is not an easy task and requires us to consider different dimensions of analysis in parallel. The report first points out what are the research and policy challenges ahead, and then introduces expected contribution from CONCORDi 2019 by the academia providing a short literature background in the main corresponding areas, by policy-makers and by other distinguished stakeholders from national or international institutions and industry. The document also provides a summary of the content of the Conference's scientific papers as well as some specific examples of challenges for the future EU policy agenda related to 'innovation for industrial transformation'. |
| Keywords: | Innovation, Corporate R&D, Technological change, Industrial transformation, EU Industrial and Innovation policies. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc117787&r=all |
| By: | Sara Amoroso (Joint Research Centre, European Commission); Simone Vannuccini (Science Policy Research Unit (SPRU), University of Sussex Business School, University of Sussex) |
| Abstract: | The participation of top R&D players to publicly funded research collaborations is a common yet unexplored phenomenon.If,on the one hand,including top R&D firms creates opportunities for knowledge spillovers and increases the chance for a project to be funded, on the other hand, the uneven nature of such partnerships and the asymmetry in knowledge appropriation capabilities could hinder the overall performance of such collaborations. In this paper, we study the role of top R&D investors in the performance of publicly funded R&D consortia (in terms of number of patents and publications). Using a unique data set that matches informationon R&D collaborative projects and proposals with data on international top R&D firms, we find that indeed teaming up with leading R&D firms increases the probability to obtain funds. However,the participation of such R&D leaders hinders the innovative performance of the funded projects, both in terms of patents and publications. In light of this evidence, the benefits of mobilizing top R&D players should be carefully leveraged in the evaluation and design of innovation policies aimed at R&D collaboration and technology diffusion. |
| Keywords: | Collaboration; publicfunding; innovationperformance; appropriability; top R&D investor |
| JEL: | L24 L25 O33 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2019-20&r=all |
| By: | Diego Comin (Dartmouth College); Danial Lashkari (Boston College); Marti Mestieri (Northwestern University) |
| Abstract: | We develop a multi-sector endogenous growth model in which the direc- tion of innovation across sectors is endogenous. The model provides a the- oretical general equilibrium framework for studying the classical demand- pull and technology-push drivers of innovation. A robust prediction is that the rate of growth innovation growth is asymptotically higher in more income-elastic sectors. We test this prediction using the universe of U.S. patents and firm R&D investments for the period 1976-2007. The analysis lends empirical support for the main predictions of the model. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1394&r=all |
| By: | Iizuka, Michiko (National Graduate Institute for Policy Studies, Japan); Pietrobelli, Carlo (UNU-MERIT, and University Roma Tre); Vargas, Fernando (UNU-MERIT, and Inter†American Development Bank) |
| Abstract: | This paper tries to broaden the scope and understanding of innovation in the mining sector, with a focus on emerging countries based on the experience of Latin America. It discusses the innovation processes that are developing in the mining sector of emerging countries, and uses the global value chains (GVC) approach to analyze the potential available to local firms. The focus is on all forms of innovation, not only those eventually subject to patenting, to include innovations in products and processes, but also in business, marketing and organizational models and practices. The new features of scientific knowledge applied to the mining sector (e.g. ICT, new materials, biotechnology) open new opportunities for new suppliers to enter and add value in mining GVCs, and we illustrate this point with specific examples of Latin American suppliers. However, in developing this argument, we cannot forget that in most of Latin American mining there is insufficient supply of local knowledge, indicators of R&D expenditures and researchers involved show a significant lag with respect to advanced countries. Multinational mining companies have not traditionally conducted intensive R&D activities near their operations, and local universities do not tend to specialize in scientific topics directly linked to the mining industry. The paper concludes by arguing that there is a need to rethink and innovate policy approaches, if countries aim at scaling up and broadening the many good examples of innovative suppliers. |
| Keywords: | Global value chains, Natural resources, Mining, Latin America, Innovation and learning, public policies |
| JEL: | O13 O32 O43 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019033&r=all |
| By: | Ufuk Akcigit; Emin M. Dinlersoz; Jeremy Greenwood; Veronika Penciakova |
| Abstract: | Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC-backing increases a startup’s likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture capitalists provide both expertise and financing for business startups, is constructed to match these facts. The presence of venture capital, the degree of assortative matching between startups and financiers, and the taxation of VC-backed startups matter significantly for growth. |
| Keywords: | venture capital, assortative matching, endogenous growth, IPO, management, mergers and acquisitions, research and development, startups, synergies, taxation, patents |
| JEL: | G24 N20 O30 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7860&r=all |
| By: | Sumudu Kankanamge (Toulouse School of Economics); Alexandre Gaillard (Toulouse School of Economics) |
| Abstract: | This paper introduces a quantitative stylized life-cycle model with entrepreneurship and endogenous business selling, buying and founding decisions. Using a new dataset on the small business sale market as well as the SSBF, the SBO and the PSID datasets, we document the importance of the buying, selling and founding margins for entrepreneurs and find large mismatches on the business sale market. The data also reveal a key role for age and life-cycle dynamics for entrepreneurial entry and exit decisions. Using the model, we find that the combination of (i) illiquid business assets, (ii) frictions on the business sale market and (iii) the life-cycle components of entrepreneurship are key to reproducing our empirical finding. Finally, we simulate a large demographic event akin to the baby-boomers generation reaching peak retirement age and evaluate the macroeconomic outcome of such a change. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1503&r=all |
| By: | Albert Bravo-Biosca |
| Abstract: | Experimental approaches are increasingly being adopted across many policy fields, but innovation policy has been lagging. This paper reviews the case for policy experimentation in this field, describes the different types of experiments that can be undertaken, discusses some of the unique challenges to the use of experimental approaches in innovation policy, and summarizes some of the emerging lessons, with a focus on randomized trials. The paper concludes describing how at the Innovation Growth Lab we have been working with governments across the OECD to help them overcome the barriers to policy experimentation in order to make their policies more impactful. |
| JEL: | C93 L26 O25 O38 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26273&r=all |
| By: | Ziesemer, Thomas (UNU-MERIT, and SBE, Maastricht University) |
| Abstract: | This literature review shows that a majority of studies finds complementarity of R&D subsidies and tax credits with private R&D expenditures. A non-negligible minority finds incomplete crowding out. Full crowding out is found only for small parts of the respective samples or small sub-sectors of the economy under consideration. Education R&D and publicly performed R&D stimulate private R&D according to a small literature. We focus on the exceptions from these dominant results. The controversies concern firm size, interaction of policy instruments, and effectiveness of parts of publicly performed R&D. There are important suggestions for future research derived from our literature review: (i) use of dynamic models with adequate time lags, (ii) explaining effects of country and firm heterogeneity. |
| Keywords: | Research & development, business R&D, subsidies, public R&D |
| JEL: | H25 O38 |
| Date: | 2019–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2019036&r=all |
| By: | Qianqian Du; Thomas F. Hellmann |
| Abstract: | Does doing more deals together always strengthen investor relationships? Based on the relationships of the top 50 US venture capital firms, this paper focuses on the strengths of relationships and their dynamic evolution. Empirical estimates indicate that having a deeper relationship leads to fewer, not more future coinvestments. Moreover, deeper relationships lead to lower exit performance, even after controlling for endogeneity. Interestingly, deeper relationships first lead to lower performance, and subsequently lead to a slowdown in the relationship intensity. Relationship effects are more negative for VC firms with less central network positions, and for deals made in “hot” investment markets. |
| JEL: | G24 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26274&r=all |
| By: | Miguel Martín-Retortillo (Universidad de Alcalá, Spain); Vicente Pinilla (Universidad de Zaragoza e Instituto Agroalimentario de Aragón, Spain) |
| Abstract: | In recent decades, the debate on economic growth has largely focused the role-played by institutions, geography, trade, and culture. In line with this concern, this study analyses the underlying causes of agricultural productivity growth in Europe in the second half of the twentieth century. To achieve this objective, a calculation of the Total Factor Productivity growth in European agriculture is made and an econometric model is proposed to determine the importance of these fundamental causes. Our study highlights that inclusive institutions, policies to support agriculture that do not discourage innovation, qualified human capital and a full openness to international trade are key factors for favouring growth of productivity in agriculture. |
| Keywords: | Agricultural productivity, European agriculture, Fundamental causes of economic growth, Comparative economics |
| JEL: | N54 O13 O47 P51 Q10 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:1912&r=all |
| By: | shah, Muhammad ibrahim |
| Abstract: | Innovation is at the core of fourth industrial revolution which is already under way. Both Sustainable growth and development depend on technological innovation. Traditional economic models/theories are now undermined because of new technologies like AI, automation,3D printing, robotics etc. Lack of innovation creates major socio-economic problems such as inequality, unemployment, poverty and many more. Therefore, in this competitive world, a country needs innovative people with innovative ideas to go forward. The aim of this study is to explain and critically examine the determinants of technological innovation across 5 South Asian countries using yearly data for 1980-2015 period. This paper employs several econometric techniques such as Cross sectional dependence to see if shocks that occur in one country affect another, Panel unit root test to check the stationary of the data and Panel Cointegration test to check long run relationship among the variables. This study also applies Fully Modified OLS to estimate long run coefficients and Dumitrescu and Hurlin panel causality test (2012) to see the causality between the variables. The findings suggest that democracy and human capital are negatively related to innovation, contrary to popular belief. The analysis also reveals that trade openness positively and significantly affects innovation and there exists a nonlinear, in particular an inverted U shaped relationship between innovation and financial development in South Asia. Findings from the Causality test reveals that there is bidirectional causality between total patent application and trade openness and also between financial development and human capital. This study, therefore, has several policy implications for South Asian countries. |
| Keywords: | Innovation; South Asia; Cross sectional dependence; FMOLS; Causality |
| JEL: | C01 C23 O31 O53 R11 |
| Date: | 2019–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96193&r=all |
| By: | Andrea Ariu; Katariina Nilsson Hakkala; J. Bradford Jensen; Saara Tamminen |
| Abstract: | This paper uses unique Finnish firm-level micro data on service imports, work-force composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002-2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector. |
| Keywords: | service offshoring, employment, firm performance |
| JEL: | F10 F14 L80 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7858&r=all |
| By: | Fernando M. Aragon Sanchez; Diego Restuccia; Juan Pablo Rud |
| Abstract: | We revisit the long-standing empirical evidence of an inverse relationship between farm size and productivity using rich microdata from Uganda. We show that farm size is negatively related to yields (output per hectare), as commonly found in the literature, but positively related to farm productivity (a farm-specific component of total factor productivity). These conflicting results do not arise because of omitted variables such as land quality, measurement error in output or inputs, or specification issues. Instead, we reconcile the findings emphasizing the role of farm-specific distortions and returns to scale in traditional farm production. We exploit unique regional variation in land tenure regimes in Uganda in evaluating the role of farm-specific distortions. Our findings point to the limited value of yields (or land productivity) in establishing the farm size-productivity relationship. More generally, we demonstrate the limitation of using farm size in guiding policy applications. |
| JEL: | C33 D24 E02 E13 O11 O12 O13 O4 O5 Q15 Q18 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26331&r=all |
| By: | Maria Elo; Susanne Sandberg; Per Servais; Rodrigo Basco; Allan Discua Cruz; Liesl Riddle; Florian Taübe |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/286550&r=all |
| By: | Martina Lawless; Zuzanna Studnicka |
| Abstract: | In this paper we present new empirical evidence on the relationship between exporting experience and the duration of export relationships at the firm-product-destination level. Our starting hypothesis that more experienced exporters would have longer lived product-market trade relationships is quite strongly rejected in baseline specifications. However,we find that when we introduce interaction effects between experience and product scope and also between experience and similarity to the firm's core export product, our results change considerably. These findings suggest that at some level of experience as an exporter there is a decline in the marginal return on the positive effects on survival of product diversification and proximity. We suggest that this is evidence that more experienced firms launch product-destination pairs further away from their core competence and/or into more risky markets which therefore increases the risk of failure of any individual product-destination pairing. |
| Keywords: | Duration of trade; Survival models; Export experience; Multi-product firms |
| JEL: | F10 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:201919&r=all |